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G-III Apparel Group (GIII) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, G-III Apparel Group (GIII - Free Report) closed at $42.36, marking a -0.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq added 0.21%.

Prior to today's trading, shares of the clothing and accessories maker had gained 11.48% over the past month. This has outpaced the Consumer Discretionary sector's gain of 7.02% and the S&P 500's gain of 4.65% in that time.

Investors will be hoping for strength from GIII as it approaches its next earnings release. In that report, analysts expect GIII to post earnings of $0.21 per share. This would mark a year-over-year decline of 4.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $650.62 million, up 6.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.30 per share and revenue of $3.28 billion. These totals would mark changes of +15.38% and +6.65%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GIII. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GIII currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that GIII has a Forward P/E ratio of 12.95 right now. Its industry sports an average Forward P/E of 15.98, so we one might conclude that GIII is trading at a discount comparatively.

Also, we should mention that GIII has a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 1.54 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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